- Hopes for a quick reopening and a vaccine may push US Steel Corporation prices higher.
- President Donald Trump’s protectionism is also a bullish sign.
- The NYSE:X shares are edging lower, but the technical pattern seems promising.
“Nigel has a future in British Steel” – goes the 1980s XTC song, but what about United States Steel? The established industry company founded at the beginning of the 20th century suffered a hit amid the coronavirus crisis but has seen its prices rising.
On Tuesday, NYSE:X is edging higher, despite the broader stock market slide, yet it may have even more room to rise. One of the reasons for the pressure on stocks is the growing Sino-US tensions.
President Donald Trump has ramped up his criticism against China – trying to shift the blame for COVID-10, which has taken the lives of over 90,000 Americans. Nevertheless, that stance could prove a boon for US Steel, which may benefit from domestic companies opting for purchasing metal products in the US.
The encouraging news about growing chances of a vaccine – coming from Moderna’s initial trial – raises the prospects for a relatively robust recovery. Will it be a V-shaped one? Probably not, but it may still be significant.
Price of Steel
The year-to-date NYSE:X chart is showing that the stock is taking two steps forward, one step back. Setting higher lows is a bullish sign. Significant resistance is around $8.5, which was the post-crash peak. The trough was $4.54, and the recovery has been considerable since that bottom in mid-March.
The stock traded around $11 at the beginning of the year, and its 52-week high was $15.90. It may still drop if falling demand weighs on orders.